Wales continues to suffer from having the highest rate of economic inactivity and the lowest employment rate of any nation or region of the 海角视频. However, Wales has a lower than 海角视频 average unemployment rate, shows the latest Labour Force Survey from the Office for National Statistics.
For February to April the employment rate in Wales, at 68.9%, was the lowest in the 海角视频 and down 1.3% (12,000 people) on November to January. The highest employment rate in the 海角视频 is in the south east of England at 78.3%. For England the employment rate is 74.4%, Scotland 73.1% and Northern Ireland 71.3%.
The figures also shows Wales has the highest economic inactivity rate in the 海角视频 at 28.4%, compared to the 海角视频 average of 22.3%. There are 543,000 of working age adults in Wales deemed economically inactive. The economic inactivity rate, which includes students and those on long-term sick, is the proportion of people aged 16 to 64 who are not in the labour market - defined as not seeking work within the last four weeks, or unable to start work in the next two. The number of economically inactive in Wales would fill the Principality Stadium more than seven times.
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However, the unemployment rate in Wales fell 0.6% on the quarter (down 9,000 people) to 3.5%. The rate is Wales is lower than the 海角视频 as whole at 4.4% (1.51 million people). Of the 海角视频 nations and regions the unemployment rate is only lower in Northern Ireland at 2.2%.
Welsh Conservative Shadow Economy Minister, Samuel Kurtz MS said: “It’s abundantly clear that Labour has no plan for Wales’ economy. Labour-run Wales, Keir Starmer’s “blueprint” for government, has the highest economic inactivity and the lowest employment rate in the whole 海角视频 and the disparity is still worsening.
“While the Welsh Conservatives push for ambitious jobs targets for the people of Wales, with a renewed focus on education and skills, Labour and Plaid push ahead with their costly plans to create 36 more politicians. They have the wrong priorities for Wales.”
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A Welsh Government spokesman said:“Whilst due care must be taken when considering labour market statistics classified by ONS as ‘official statistics in development’, it’s clear that failure to stimulate economic growth across the 海角视频 continues to negatively impact the employment market, with Wales no exception.
“Evidence from across a range of sources – such as the Annual Population Survey, HMRC data, Workforce Jobs, and the claimant count – all suggest that the labour market in Wales has followed similar trends to the 海角视频 since the pandemic.
“Our economic mission sets out how we are using the levers we do have to narrow the skills divide, support better jobs and in turn tackle poverty, with our Plan for Employability and Skills prioritising those most in need of help. This includes supporting people to stay in work and those further away from the labour market to find employment.”
On the overall 海角视频 figures, the ONS said: “This month’s figures continue to show signs that the labour market may be cooling, with the number of vacancies still falling and unemployment rising, though earnings growth remains relatively strong.”
The Bank is watching the jobs market, and wages in particular, closely as it looks to bring CPI back to its 2% target, with cooling earnings growth seen as being key to paving the way for it to begin cutting interest rates.
The ONS data showed that while earnings remained unchanged for the third consecutive set of figures, private sector pay growth edged down to 5.8%, but stayed at 6.4% in the public sector.
The ONS said last month that inflation fell to 2.3% in April - its lowest level since 2021 - but the fall was not as steep as many experts were expecting.
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The next set of inflation figures will come just before the Bank’s June 20 rates decision.
Jake Finney, economist at PwC 海角视频, said: “The latest ONS data presents a headache for the Bank of England.
“A broad set of indicators suggests that the labour market is cooling but pay growth has not fallen to the extent they would like to see.”
But he added that there remains “considerable uncertainty” over the ONS unemployment figures, as the statistics body continues to overhaul its labour force survey due to low response rates, with the full revamped version not due to be introduced until September.
More timely data from HM Revenue & Customs provided further evidence of a cooling jobs market, with the number of 海角视频 workers on payrolls falling 3,000 to 30.3 million in May, though this is subject to revision.
Peter Arnold, EY’s chief economist, said while April’s higher-than-expected inflation data “likely took a June interest rate cut off the table”, an August cut remains on the cards after the latest jobs figures from the ONS.
Mr Arnold said: “With pay growth slowing in line with expectations and labour market conditions loosening, the EY Item Club doesn’t see anything in this release that would prevent the MPC from cutting rates later in the summer.”